MPC Caribbean Clean Energy completes acquisition of solar park in the Dominican Republic
ST. MICHAEL, Barbados – 12 May 2022 – MPC Caribbean Clean Energy Fund LLC announced the completion of the acquisition of the operational Monte Plata solar park in the Dominican Republic. MPC Caribbean Clean Energy Fund (the Investment Company of the regionally publicly listed MPC Caribbean Clean Energy Limited) indirectly holds a shareholding of approximately 36% in the asset.
The Monte Plata solar park, which currently sells all of its generated power under a 20 year US-dollar denominated PPA to the state-owned Dominican Corporation of State Electrical Companies, was the first utility-scale power station in the Dominican Republic and was also the largest project of its kind in the Caribbean at the time of commissioning in 2016. The project attracted USD 38 million of senior debt from the Dutch and German development finance institutions FMO and DEG in 2018. The solar park has an operational capacity of 33.4 MWp.
The project will be expanded to 75.6 MWp of installed solar PV capacity. For the capacity expansion, a 15 year US-dollar denominated PPA for an additional 42.2 MWp of solar PV capacity was signed in October 2021. Since then all project development activities have been completed in parallel and construction was initiated in April 2022. The commissioning and commercialization of a combined annual energy production of approximately 118,000 MWh and then annual energy sales of 68,500 MWh from the expended capacity is expected to take place in Q2/Q3 2023. Financial closing with the current lenders FMO and DEG is expected to be achieved shortly. Over the course of its operational lifespan the expanded solar park will help avoid the production of nearly 2 million tonnes of CO2.
With regards to the social and economic benefits for neighboring communities, the project expects to generate around 300 direct jobs and close to 1,000 indirect jobs at its peak stage of construction similar to how it did during phase 1.
Gözde Kurusoy, Director Banking and Finance at MPC, said: “The Dominican Republic is the largest existing renewables independent power producer market in the Caribbean, with about 780 MW of installed wind and solar power capacity. The Dominican government intends to generate 25% of its energy from renewable sources by 2030 and plans to be CO2 neutral by 2050. To achieve these goals, the Dominican government has made the development of renewable energy projects a priority. Diversifying the country’s energy matrix and reducing reliance on fossil fuels will be important steps for the Dominican Republic’s future.” With the financial close of this acquisition, MPC Caribbean Clean Energy Fund shows the commitment to accelerate economic growth, support the transition towards a low carbon economy and drive community and social impact.”
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About MPC Caribbean Clean Energy Ltd
MPC Caribbean Clean Energy Ltd (the Company) is a Caribbean-based investment company which was established in 2017 with the clear vision to enable private and institutional investors from Jamaica and Trinidad and Tobago to invest through the Company into one of the few investment funds which invests in renewable energy projects in Jamaica, Trinidad and Tobago and the wider Caribbean region: the MPC Caribbean Clean Energy Fund LLC (the Investment Company or the Fund). More details at www.mpc-cleanenergy.com
MPC Caribbean Clean Energy Ltd.
St. Michael, Barbados, BB14004
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